Bumped ~ Original post by kel way back ~ 2008Overnight Global Realignment Of Currencies? Not Quite. It's Taken Years Of Preparation. Are We There Yet? Maybe So....
It looks like we might see an unexpected realignment of multiple currencies around the world. The middle east (Iraq) seems to be the "lynchpin". While researching and collecting articles over the past few years, all information is coming together slowly but surely. The possibility of regional currencies realigning with one another is very great. This a Major undertaking ... imo, kel...
If you'll remember, it hasn’t happened overnight. The foundation for the concept/plan began years ago in Monterrey, Mexico, March 2002.
The first UN-sponsored summit-level meeting to address key financial and related issues pertaining to global development and international economic cooperation was held in Monterrey, Mexico, in March 2002. The scope of participation was unprecedented, with 50 heads of state and over 200 ministers of finance, foreign affairs, development and trade. They were joined by the heads of the UN, World Bank, International Monetary Fund, the World Trade Organization and by prominent business and civil society leaders. Also unprecedented was joint sponsorship by the UN, World Bank, IMF and WTO.
UNCTAD proposes new multilateral regime to stave off currency speculation. One of the most innovative ideas to reform the global monetary and financial architecture discussed during the **link International Follow-up Conference on Financing for Development in Doha was a new multilateral regime to stave off currency speculation and provide the policy space for all countries to pursue expansionary fiscal and monetary policies to protect jobs and their domestic economy (counter-cyclical measures) in the face of a recession or financial crisis. This is one of the key proposals that a Task Force set up by the United Nations Conference on Trade and Development *link (UNCTAD) will present in mid-February 2009.
http://articlesofinterest-kelley.blogspot.com/2009/03/two-most-important-meetings-coming-up.html
COMING UP: THIS IS, IMO, ONE OF THE MOST IMPORTANT MEETINGS: VOTE ON SDRs AUGUST 7TH (PASSED)
IMF SDR ALLOCATIONS AUGUST 28TH AND SEPTEMBER 9TH
IMF Executive Board Backs US$250 Billion SDR Allocation to Boost Global Liquidity
Press Release No. 09/264 July 20, 2009
The Executive Board of the International Monetary Fund (IMF) has backed an allocation **link Drawing Rights (SDRs) equivalent to US$250 billion to provide liquidity to the global economic system by supplementing the Fund’s 186 member countries’ foreign exchange reserves.
The equivalent of nearly US$100 billion of the new allocation will go to emerging markets and developing countries, of which low-income countries will receive over US$18 billion. The proposal will now be submitted to the IMF’s Board of Governors for final approval.
“The SDR allocation is a key part of the Fund’s response to the global crisis, offering significant support to its members in these difficult times,” IMF Managing Director Dominique Strauss-Kahn said.The SDR allocation was requested as part of a **link US$1.1 trillion plan agreed at the .G-20 summit in London in April and endorsed by the International Monetary and Financial Committee (IMFC) to tackle the global financial and economic crisis by restoring credit, growth and jobs in the world economy.
If approved by the Board of Governors with an 85 percent majority of the total voting power in a vote scheduled to close on August 7, the SDR allocation will be in effect on August 28."
The allocation is a prime example of a cooperative monetary response to the global financial crisis," the Managing Director
underscored.The **link SDR allocation will be made to IMF members that are participants in the Special Drawing Rights Department (currently all members) in proportion to their existing quotas in the Fund, which are based broadly on their relative size in the global economy.
The operation will increase each country’s allocation of SDRs by approximately 74 percent of its quota, and Fund members’ total allocation to an amount equivalent to about $283 billion, from about $33 billion (SDR 21.4 billion).SDRs allocated to members will count toward their reserve assets, acting as a low cost liquidity buffer for low-income countries and emerging markets and reducing the need for excessive self-insurance.
Some members may choose to sell part or all of their allocation to other members in exchange for hard currency--for example, to meet balance of payments needs--while other members may choose to buy more SDRs as a means of reallocating their reserves. In supporting the allocation proposal, the Executive Board stressed that it should not weaken the pursuit of prudent macroeconomic policies, and should not substitute for a Fund-supported program or postpone needed policy adjustments.
http://articlesofinterest-kelley.blogspot.com/2009/08/imf-sdr-allocations-august-7th-august.html
~snip from older article …
Approval of an SDR allocation requires an 85 per cent majority vote of the IMF membership. The US Treasury secretary can vote for an SDR allocation of up to $250bn (€199bn, £178bn) – or larger, if he consults with key members of Congress 90 days before he casts his vote. Thus, the actual allocation could occur by mid-summer, sooner than other crisis-mitigation measures would take effect
http://articlesofinterest-kelley.blogspot.com/2009/08/how-imf-fund-can-help-save-world.html
A sudden worldwide currency revaluation is imminent
~snip from “call me Contrarian”
http://fofoa.blogspot.com/2009/07/call-me-contrarian.html
This imbalance, once corrected, will make central bank fiat currencies sustainable once again.
Do I think this magnitude of a reset could happen overnight? Yes, I do. Why? Because that is the way you get the most "bang for your buck". Surprise is the order of the day!
Some of the entities that you think most deserve to be wiped out will turn out to be the BIGGEST beneficiaries of this "overnight" transfer of wealth. And others who thought they were fully hedged will be wiped out. These are the kinds of surprises I expect. I am truly in the mode of "expecting the unexpected" with a timeline shorter than a normal TV season.
Call me contrarian. But please don't call me a "doomer". I do not view this as doom. I realize the difference between the monetary system and the real economy. I recognize the difference between real capital and illusory wealth.
The current monetary system is like a virtual grid, an electronic parasite overlaid on the real world. It can completely vanish and leave the real world totally intact. I look forward to a new beginning for the entire system. A healthy start like we have not seen in generations.
This reset is not something I am pushing for. It is not something I even wanted a mere year and a half ago. Instead, it is what I see as inevitable.
Yes, many will be hurt and I will mourn their losses as some of my own loved ones are not well prepared. But what can I do more than I am already doing? We cannot fight the inevitable.
We can only prepare. Some have said that I am only viewing the forest and not the trees. That I do not care for the individual trees that will be engulfed by the forest fire. I do care, and this is why I blog.
There is NO SOLUTION that will save everyone's dollars. There are simply too many of them.
There is NO SOCIALIST PARADISE. There is only reality and, living in it as we do, we must each walk our own Trail into the future.
Perhaps I am wrong and this fateful day will come later than I expect. I hope I am wrong. More people will make it to the safe harbor in the meantime. But do I venture out into the open sea while I wait?
No, I remain moored to my anchor. So call me contrarian, but follow the consensus voices out into the choppy waters at your own peril. Supplemental reading: What did the top central bankers of the world know and when?
This is an excellent forensic examination of our monetary leaders. One has to wonder, if this much was known at the top level of central banking, shared, published and ignored by those with the most power, what preparations were made by the central bankers that did not ignore the warnings?
http://articlesofinterest-kelley.blogspot.com/2009/08/sudden-worldwide-currency-rrvaluation.html
A sudden worldwide currency revaluation is imminent
Long article @ blog
http://articlesofinterest-kelley.blogspot.com/2009/08/sudden-worldwide-currency-rrvaluation.html
And we have
UNITED NATIONS: SEPTEMBER 15TH, 23-24-2009
64th Session Agenda The sixty-fourth session will convene at United Nations Headquarters on Tuesday, 15 September 2009, at 3 p.m. The general debate will be held from 23 to 30 September 2009
http://articlesofinterest-kelley.blogspot.com/2009/08/united-nations-september-15th-23-24.html
and...
Pittsburgh, Pennsylvania will host the G-20 Summit September 24-25, 2009.
http://articlesofinterest-kelley.blogspot.com/2009/08/g-20-summit-september-24-25-2009.html
And we have …
Fasten Your Seatbelts
Date: Sun, 2 Aug 2009 Greetings and Salutations; From Poof; Never discount anything Poof says.
http://articlesofinterest-kelley.blogspot.com/2009/08/fasten-your-seatbelts.html
Tuesday, July 7, 2009
A currency realignment has to take place to correct global imbalances
"A currency realignment has to take place to correct global imbalances," Tendulkar said. "The Chinese yuan and the Japanese yen have to appreciate and the U.S. currency has to go down."Dollar's Role Under Debate In Run Up To G8 SummitAIX EN PROVENCE, France (Dow Jone)--France, Russia and India questioned the role of the dollar as the world's reserve currency during the weekend, indicating its status is likely to be a strong talking point in this week's Group of Eight leading nations' summit in Italy.
At a conference here this weekend French Finance Minister Christine Lagarde called for better foreign exchange policy co-ordination, hinting that the dollar's role as a reserve currency may need to be discussed in the medium term. Her remarks were echoed by European Central Bank board member Christian Noyer Sunday who said: "We must ensure a bigger stability between currencies in the coming months.""We must avoid...the piling up of currency reserves," and find more efficient ways of financing global trade, he added.
http://articlesofinterest-kelley.blogspot.com/2009/07/currency-realignment-has-to-take-place.html
Friday, June 19, 2009
Gulf dinar 'to replace four local currencies
Four Gulf oil producers planning monetary union are expected to name a new common currency the Gulf dinar, a Saudi academic said yesterday.And the new currency will run in tandem with national coins and notes now in circulation to ease the transition, he said.
Wadei Ahmed Kably, economics professor at the King Abdul Aziz University in the Saudi Red Sea Port of Jeddah, said he expected the Gulf dinar to be issued by the Gulf Central Bank and set at SR10, nearly $2.66.
"Based on the European Union experience, I expect the new currency to be circulated along with the existing national currencies in the Gulf Cooperation Council," he told the Saudi Arabic language daily Al Watan."Both currencies will remain in circulation by banks and individuals for one or two years so the public get used to the new currency.
National currencies could then be gradually withdrawn within five years so the public will not feel any difference," he told the paper.Saudi Arabia, the world's largest oil exporter, Kuwait, Qatar and Bahrain are pushing ahead with the monetary union plans following the withdrawal of the UAE and Oman.
http://articlesofinterest-kelley.blogspot.com/2009/06/gulf-dinar-to-replace-currencies.html
Thursday, March 19, 2009
Global Currency (Super Currency)
16 Mar 2009
IMF poised to print billions of dollars in 'global quantitative easing' The International Monetary Fund is poised to embark on what analysts have described as "global quantitative easing" by printing billions of dollars worth of a global "super-currency" in an unprecedented new effort to address the economic crisis. Alistair Darling and senior figures in the US Treasury have been encouraging
the Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights in the coming months as part of its campaign to prevent the recession from turning into a global depression. Should the move, which is up for discussion by the summit of G20 finance ministers this weekend, be adopted, it will represent a global equivalent of the Bank of England's plan to pump extra cash into the UK economy.
However, economists warned that the scheme could cause a major swell of inflation around the world as the newly-created money filters through the system.The idea has been suggested by a number of key figures, including billionaire investor George Soros and US Treasury adviser Ted Truman. Simon Johnson, former chief economist at the IMF, said: "The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them. "The objective is to create a windfall of cash.However if everybody goes out and spends the money it could be very inflationary.
Great ~Video http://link.brightcove.com/services/link/bcpid3469232001/bctid16618136001
http://articlesofinterest-kelley.blogspot.com/2009/03/global-currency-super-currency.html
April 8, 2009
FED SECURES FOREIGN CURRENCIES
WASHINGTON: The US Federal Reserve Monday secured backup foreign currency for financial institutions in the worsening global downturn, while Japan moved to pump at least 100 billion dollars into its stalling economy.
Russian Prime Minister Vladimir Putin told lawmakers that Russia would spend three trillion rubles (90 billion dollars) in anti-crisis measures to cope with a "very difficult" 2009. The Federal Reserve Monday announced a currency swap deal with the central banks of Britain, Japan and Switzerland as well as the European Central Bank (ECB) aimed at helping US financial institutions.
The currencies offered by the four central banks to the Fed under the tie-up through October 2009 are equivalent to nearly 290 billion dollars, the Fed said in a statement. The US central bank said it had entered into swap arrangements with the Bank of England, the ECB, the Bank of Japan and the Swiss National Bank that "would enable the provision of foreign currency liquidity by the Federal Reserve to US financial institutions." "
Should the need arise, euro, yen, sterling and Swiss francs would be provided to the Federal Reserve via these additional swap agreements with the relevant central banks," the statement said.
The move came as central banks try to ease credit flows and restore lending in a bid to bolster the financial system critical to recovery of the world economy reeling from the worst downturn since the Great Depression. "The only question is: why now?" Bank of America economist Gilles Moec said. "It would have made more sense a few months ago when the tension on markets was extreme, possibly triggering a demand for alternatives to the dollar on the US market," Moec said.
"This is probably a precautionary move," he added.With Japan's economy in its worst slump since World War II, Prime Minister Taro Aso ordered fresh stimulus spending of at least 100 billion dollars. It would be Japan's biggest ever supplementary budget, highlighting mounting fears in Tokyo about the economy, which has been battered by a plunge in worldwide demand for Japanese cars and high-tech goods.
"Japan's economic growth rate is expected to fall the most among advanced nations," Aso told reporters.The world's second-largest economy contracted at a startling annualized pace of 12.1 percent in the 2008 fourth quarter. Aso said world leaders, who held a Group of 20 crisis summit in London Thursday, were determined to cooperate by boosting public spending. Aso, facing key elections this year, instructed his finance minister to draw up an extra budget of at least 2.0 percent of gross domestic product (GDP) for the 2009 financial year starting this month.
That would make the package worth at least 10 trillion yen (100 billion dollars). The package comes on top of stimulus measures approved by parliament since October that were worth a combined 75 trillion yen, of which actual fiscal spending was about 12 trillion yen.
And in Hong Kong, the city's chief executive Donald Tsang said he could adopt further economic stimulus measures later this year to fight the financial downturn. Tsang said in an interview with the Financial Times that the city had 400 billion HK dollars (51.6 billion US dollars) in the bank "so I'm in a good position to spend more if I want to ... If necessary we will do something in the middle of the year.
The International Monetary Fund wants governments to put 2.0 percent of GDP into stimulus spending this year and has suggested more stimulus may be needed in 2010. Russia, which has seen its windfall from high oil prices tumble, faces a tough year as the global economic crisis bites, Putin said. "The year 2009 will be very difficult for us," Putin said as he presented his government's anti-crisis plans before the State Duma, the lower house of Russia's parliament. Putin said the government would spend three trillion rubles (90 billion dollars) this year. Last year Russia announced spending measure totaling almost 200 billion dollars to fight the crisis. –
Roundabout Bailout: Fed To Pump Foreign Currency Into U.S. Banks
April 10, 2009
The Fed is already printing trillions of U.S. dollars and pumping them into the global economy in an effort to stave off a financial collapse. Now it plans to start injecting foreign currency, too, according to minutes recently released from its March meeting.
How the hell can the U.S. Fed do that? Glad you asked.
The Federal Reserve engages in so-called swaps with foreign countries, which we first reported here. It uses these swaps to pump hundreds of billions of dollars into foreign central banks while taking foreign currency in exchange.
The foreign central banks pass their new U.S. dollars to their foreign financial institutions, while the Fed has kept the foreign currency on its balance sheet and not injected it into the money supply.
Now, however, the Fed will be able to take the foreign currency it acquires in these swaps, and rather than hold it on its balance sheet, pass it on to U.S. banks, according to minutes from the Federal Open Market Committee's March meeting. These U.S. banks can then use that foreign currency to cover their foreign debts.
The Fed governors said, according to the meeting notes, that the measure was only precautionary: "There was no evidence that these institutions were encountering difficulty in meeting foreign currency obligations at this time, but these facilities would be available should pressures develop in the future."
The expanded effort is part of a Fed project that has been injecting hundreds of billions of dollars into foreign central banks over the last several months.
The committee notes say that the new program will "augment the existing network of central bank liquidity swap lines."
The Fed also announced in its minutes that it was approving "additional temporary reciprocal currency arrangements (swap lines) with the Bank of England, the European Central Bank (ECB), the Bank of Japan, and the Swiss National Bank." Extending additional swaps to these central banks raises the question of whether those banks are facing difficulties repaying previous swaps. The European and Japanese economies have been collapsing at a faster rate than the United States' has.
"It is basically either an extension or increase of the existing lines, and raises suspicion that massive losses have been incurred in the previous round of supposedly 'temporary' swaps, as the return to dollar-supply-normalcy that these geniuses pretended to expect would have happened by now, did not," ventures economist James Galbraith.
Rep. Alan Grayson (D-Fla.), after reading the minutes, describes the Fed plan as "a massive transfer of wealth from the American people to who knows where," calling it a "round-about bailout."
Beyond that, he notes, it's hard to know what to make of the Fed action because of the obscurity of the institution. "The Fed is out of control. If the president tried to do this, Republicans would be calling for his impeachment. But because it's done by the man behind the curtain they call the Chairman of the Federal Reserve, it's supposedly okay," he says, arguing that the founding fathers never intended one man to have so much unchecked power. The obscurity has led economists to wonder about the Fed's true motives.
The expansion of Fed power comes amid increasing calls for transparency into the workings of the organization. If the Fed does send foreign currency to U.S. banks, it will be under no requirement to disclose which banks or how much.
On Wednesday, Financial Services Committee Chairman Barney Frank (D-Mass.) called for the GAO to have more authority to investigate the Fed. Grayson says Frank has told him on numerous occasions that Congress needs a better idea of what it is that the Fed is doing.
On Wednesday night, House Speaker Nancy Pelosi (D-Calif.) called on the Fed to post its financial transactions online during a conversation with the Daily Show's John Stewart. She plans to address "Fed authority" when Congress returns.
From the minutes:
The Committee also took up a proposal to augment the existing network of central bank liquidity swap lines by adding several temporary swap lines that could provide foreign currency liquidity to U.S. institutions, analogous to the arrangements that currently provide U.S. dollar liquidity abroad.
There was no evidence that these institutions were encountering difficulty in meeting foreign currency obligations at this time, but these facilities would be available should pressures develop in the future. The Committee unanimously approved the following resolution:
"The Federal Open Market Committee authorizes the Federal Reserve Bank of New York to enter into additional temporary reciprocal currency arrangements (swap lines) with the Bank of England, the European Central Bank (ECB), the Bank of Japan, and the Swiss National Bank to support the provision of liquidity in British pounds, euros, Japanese yen, and Swiss francs.
The swap arrangements with each foreign central bank shall be subject to the following limits: an aggregate amount of up to £30 billion with the Bank of England; an aggregate amount of up to €80 billion with the ECB; an aggregate amount of up to ¥10 trillion with the Bank of Japan; and an aggregate amount of up to SwF 40 billion with the Swiss National Bank. These arrangements shall terminate no later than October 30, 2009, unless extended by mutual agreement of the Committee and the respective foreign central banks.
The Committee also authorizes the Federal Reserve Bank of New York to provide the foreign currencies obtained under the arrangements to U.S. financial institutions by means of swap transactions to assist such institutions in meeting short-term liquidity needs in their foreign operations. Requests for drawings on the central bank swap lines and distribution of the foreign currency proceeds to U.S. financial institutions shall be initiated by the appropriate Reserve Bank and approved by the Foreign Currency Subcommittee."
And more on that …
U.S. Injecting Billions Into Foreign Central Banks
March 17, 2009 05:07 AM
For more than a year, the U.S. Federal Reserve System has been increasingly acting as the world's central bank, injecting hundreds of billions of dollars into foreign government treasuries in an effort to increase liquidity in those countries.The foreign central banks have used the U.S. currency to bail out financial institutions within their borders. The Fed program links its balance sheet directly to the fates of foreign central banks at a time when they're on the ropes.
And what we anticipate….
Thursday, July 2, 2009
Iraqi Central Bank Monetary Policy - Verge of a New Policy
Iraqi Central Bank monetary policy in the country on the verge of a new developments
BAGHDAD (Iba) July 2, 2009/ Central Bank / developments / ..
adviser said that the Iraqi Central Bank monetary policy in the country on the verge of a new developments are in favor of the national economy after the withdrawal of foreign military from Iraqi cities.
The appearance of Mohammed Saleh told the independent press (Iba) said Thursday that the official announcement of the withdrawal is a recognition of the improved security, a fact which serves the starting point of monetary policy and contribute to the enhancement of the value of the dinar against the dollar and reflected positively on the whole economic process.
The benefit of the bank's intention to develop high-technology programs during the current year and the activation of international conventions and recommendations of the Bank and Iraqi banks.Rada criticism by a number of those involved in economic affairs of monetary policy.
He stressed the need for the establishment of banks within the professional systems and mechanisms of action are far from considerations of scale and commensurate with the interests of Albullad.Stressing that economic integration, including monetary, issue of great importance to raising the living standards of international competition and citizen-based preferences.
The benefit of the Bank emphasizes the preparation of studies and research upon which these policies in the design and the professional independence and transparency, as in the case of international banks.Adding that all those keen to develop the work of banks and to preserve the gains achieved during the previous period.
The Saleh said in a press statement that concerned with the affairs of the country's monetary policy following the uncertainty in understanding the signals the monetary policy of the bank, which continued to face the cases of hyper-inflation and the deterioration of the Iraqi dinar exchange rate and through the manifestations of the imbalance of economic and social experience of the difficult country for more than three decades.( end) / 20 /
http://articlesofinterest-kelley.blogspot.com/2009_07_01_archive.html
Obama to Abandon the Dollar?
http://articlesofinterest-kelley.blogspot.com/2009/08/obama-to-abandon-dollar.
NOV. 4, 2009
INTERNATIONAL FINANCIAL SYSTEM AND DEVELOPMENT
http://daccess-dds-ny.un.org/doc/UNDOC/GEN/N09/593/65/PDF/N0959365.pdf?OpenElement
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DECEMBER 9, 2009 UPDATE AND WHERE ARE WE NOW? FOLLOW THE LINK
POSTONED ~ NOV. 23-24TH **UNITED NATIONS "THE MONTERREY CONSENSUS AND DOHA DECLARATION"
MARCH 23 -24- 2010 - UNITED NATIONS "THE MONTERREY CONSENSUS AND DOHA DECLARATION"
Central Bank of Iraq's Governor, Sinan Shabibi and the United Nations - UN Meeting ...March 23-24-2010
REVALUATION SOONER THAN EXPECTED?
LINKS - POSSIBLE REGIONAL ADJUSTMENT TO CURRENCIES 2010
